“This is being driven by greater adverse selection than seen in the past, where borrowers who are able to refinance are doing so, leaving the non-performing loans in the pool and therefore increasing the pressure on the transactions.”

Fitch says it will continue to monitor the performance of the UK non-conforming RMBS over the next quarters to see the effects of a challenging market environment on each transaction.

Skipton is to offer first-time buyers 95% LTV deals through its Mutually Exclusive scheme.From September 15 its account holders can access the deals if they or a family member put 20% of the property’s value into one of the mutual’s savings accounts.

In this short video, Head of Multi Asset at Royal London Asset Management Trevor Greetham looks at how to configure portfolios to match different risk appetites, explaining the tools he uses to manage risk. Click here